Deferred Taxes
 Current Tax Questions
Delinquent Tax Questions
Tax deferral is designed to help taxpayers whose income is low relative to the amount of real estate tax due on their residence. With the deferral plan, taxpayers may defer all or part of their taxes, with interest accruing on the deferred amount until it is paid. The deferral becomes a lien against the property. The interest rate may not exceed seven percent. Several conditions must be met in order to defer taxes.
- "Household" means a person or group of persons living together in a room or group of rooms as a housing unit, but the term does not include persons boarding in or renting a portion of the dwelling.’
- Income means adjusted gross income as defined in s. 62 of the United States Internal Revenue Code, of all members of a household. (This is the amount reported on IRS Form 1040.)
Qualifications for Homestead tax deferral and amount of taxes and non-ad valorem assessments that may be deferred:
- Must be entitled to claim Homestead Exemption.
- Amount—Based upon adjusted gross income of all members of the household and/or age.
- If the prior year adjusted gross income of all members of the household was less than $10,000, the entire tax amount and any non-ad valorem assessments may be deferred.
- Anyone may defer that portion of taxes and any non-ad valorem assessments, which exceed 5% of the adjusted gross income of all members of the household for the prior calendar year.
- Anyone 65 years of age or older may defer that portion of taxes and any non-ad valorem assessments which exceeds 3% of the adjusted gross income of all members of the household for the prior calendar year.
- Anyone 65 years of age or older with an annual adjusted gross income which is less than the amount of the household income designated for the additional Homestead Exemption ($23,463) pursuant to section 196.075, Florida Statues, may defer the entire amount of taxes and any non-ad valorem assessments.
- The amount of primary mortgage financing on the Homestead cannot exceed 70% of the assessed value of the Homestead.
In addition to having homestead tax exemption and meeting the income requirements, other conditions must also be met. All liens and deferred taxes may not exceed 85% of the home’s assessed value. In addition, the property owner must provide proof of fire and extended coverage home insurance in the amounts which is in excess of the sum of all outstanding liens, deferred taxes, non-ad valorem assessments and interest. They must have their insurance company provide our office with a loss payable clause made payable to the County Tax Collector prior to the deadline.
Applications for the deferral plan must be made each year after the tax bills have been mailed. Deadline to file and be approved is January 31.
Taxes that have been approved for deferral remain in the delinquent tax files with interest accruing as a lien against the property. The property cannot be sold or transferred without the lien being satisfied. The only advantage to deferring taxes is that no one can file for a "tax deed" against the property as can be done in regular unpaid taxes.
|
